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Apple Supplier Foxconn Cuts Covid-19 Restrictions at iPhone Factory in China

Apple is looking at accelerating plans to expand production outside China, including iPhone assembly, according to The Wall Street Journal. (Photo by Getty Images)

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is relaxing some of the remaining Covid-19 restrictions at the world’s largest iPhone assembly site. The move will be a relief to
but isn’t likely to come in time to save it from taking a hit to iPhone sales in the short term. 

(ticker: 3217.TAIWAN) is ending its “closed loop” system at the facility in Zhengzhou that required workers to stay in their workplaces and dormitories to prevent the spread of coronavirus infections, the Associated Press reported, citing a company statement on

also known as Hon Hai Precision Industry, didn’t immediately respond to a Barron’s request for comment early on Thursday. 

Despite the shift, it will still likely take some time for the availability of iPhones to recover from disruption caused by the issues at the Foxconn site.
(AAPL) is set to take a hit over the crucial holiday season, according to UBS analysts, who lowered their fiscal 2023 forecast iPhone sales to 232 million from 239 million. 

“While iPhone demand is typically durable […] the duration of the disruptions are not analogous to prior demand shortfalls resulting in perishability,” UBS analysts led by David Vogt wrote. 

stock was down 1.2% in premarket trading on Thursday,

As China eases its Covid-19 restrictions, international companies with operations in the country are confronted with the decision of whether to put their faith in a steady resumption of activity or implement costly plans to diversify their supply chains.

The disruption at Zhengzhou and other Chinese sites has incentivized Apple to expand its supply chain outside China. Foxconn is looking at building a $20 billion semiconductor plant in India in partnership with Vedanta Group, The Wall Street Journal reported earlier this week.

Write to Adam Clark at


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